Note to readers
Financial flows
Fourth quarter 2004
The Financial Flow Accounts (FFA) measure net lending or borrowing by
examining financial transactions in the economy by sector. The FFA arrive
at a measure of net financial investment which is the difference between
change in financial assets and liabilities (e.g., net purchases of securities
less net issuance of securities).
Newly incorporated tables present data on sector financial transactions,
illustrating the flow of funds by financial instruments. These tables
also provide the link between financial and non-financial activity in
the economy which ties estimates of saving and non-financial asset formation
(e.g., investment in new housing) with the underlying financial transactions.
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